Transcript for How COVID-19 is impacting the economy
More now on how corona virus is impacting the economy joining me now is Mark Zandi chief economist at Moody's analytics mark. Good evening and thank you for joining us first of all what a sense of what the odds are the -- tips us into recession how should the government response. Uncomfortably I'd say they're better than any in eyes at this point that this is gonna push us into recession. The Federal Reserve needs cut interest rates they had a bit more to go here and I think they will over the next few next week in the week thereafter. But they don't have a whole lot of room to maneuver so that Otis was quickly switched to the president president trump. Think congress to come up with some fiscal stimulus tax cut spending increases help to the folks that are. Being hardest hit it that doesn't come pretty soon and it's not an aggressive stimulus. Recession will be very difficult to avoid. And we've seen massive volatility over the past few weeks and these wild swings are impacting the broader economy specifically the job market. Sure I mean he it's even today just today's action could sliced two trillion dollars worth of wells. For folks that own these stocks and in total we've lost a close to seven trillion dollars in wealth. So that's gonna make them these people the people who are right grew group grew relying on this is there retirement nest egg. Baby boomers you meet people in their fifties and sixties. I think twice about going out and spending and now than have this think about saving more spending last. To be prepared for retirement and that's gotten impact on spending says that as an impact on spending business is seen that and that's gonna it had an impact on their hiring. And potentially layoffs and give us your best and worst case scenario on an economic impact from the corona virus. Well the best case scenario as we skirt thrill me that your administration get to together and that passes along with congress and easy. The hefty stimulus package in the next few weeks. And that we make it through with and some damage certainly won't feel very good to be good trying it will make our way through. Worst case scenario you know there's a lot of dark scenarios here so so hopefully the administration. Can can now work together to congress and can pass something soon and what's your best advice and the average investor during all of this volatility. Don't look that you should look at the mania for most of us are you know year you should have a long term horizon means more than ten years. The stock market goes up it goes down it goes all around you should not be focused on down here boomer like me in your fifties and sixties. The windward through this you shouldn't I don't think at this point it's it's over don't I wouldn't sell. But what it's all over you should sit down and really think about how invested you are in the stock market because again it goes up and it also goes down and your closing at a retirement he only caught with a down market. And you can mark just quickly before you go I'm just curious are you concerned about a potential fallout. The corona virus on the markets then you are the actual sickness or out on even though we can make existing. Should between the two at this point. No no I mean both but obviously these did the destruction of ours is gonna create yet people. Are gonna get sick they got to take care of sick ones their kids not going to schools that stay home businesses are gonna get disrupted. They would travel tourism industry international trade this is very disruptive in that's the thing that's causing so much yanks on Wall Street. All right Mark Zandi thank you so much for your insight tonight.
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